Valeant nears deal for 'female Viagra' maker Sprout: WSJ

Published 6:47 AM ET Thu, 20 Aug 2015
Reuters

Norm Betts | Bloomberg | Getty Images

Valeant Pharmaceuticals signage is displayed outside of the company's headquarters in Mississauga, Ontario.

Canada's Valeant Pharmaceuticals is nearing a deal to pay $1 billion for Sprout Pharmaceuticals, the company that just won approval to sell the first drug that aims to boost a woman's libido, The Wall Street Journal reported.

Valeant spokeswoman Laurie Little said the company does not comment on market rumors or speculation. Representatives at Sprout did not immediately respond to a request for comment outside regular U.S. business hours.

The U.S. Food and Drug Administration late on Tuesday approved Sprout's drug for pre-menopausal women. The agency had previously rejected the treatment twice over concerns it did not provide a significant enough benefit to outweigh its risks, but came under pressure from advocacy groups who argued that women were unfairly denied access to the therapy.

Montreal-based Valeant is Canada's largest pharmaceutical company, with top-selling products including heart treatment Isuprel and anti-depressant Wellbutrin. It has been a serial acquirer, with deals lifting its revenue to more than $8 billion in 2014.

As part of the deal, which could be announced as early as Thursday, Valeant will take on all of Sprout's 25 employees, including its leadership team, the Journal said.